Mastering Principles And Practices In

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Mastering Principles andPractices inPMBOK , PRINCE2 ,and Scrum 9780134060811 Book 1.indb i 1/23/15 1:53 PM

Books in the FT PressProject Management SeriesMastering Project, Program, and Portfolio Management: Models forStructuring and Executing the Project HierarchyLister (ISBN: 0133839745)Mastering Principles and Practices in PMBOK, Prince 2, and ScrumRoudias (ISBN: 0134060814)Mastering Project Human Resource Management: EffectivelyOrganize and Communicate with All Project StakeholdersSingh (ISBN: 0133837890)Mastering Project Management Integration and Scope: A Frameworkfor Strategizing and Defining Project Objectives and DeliverablesSokowski (ISBN: 0133886425)A Comprehensive Guide to Project Management Schedule and CostControl: Methods and Models for Managing the Project LifecycleWilson (ISBN: 0133573117)Mastering Risk and Procurement in Project Management: A Guide toPlanning, Controlling, and Resolving Unexpected ProblemsWilson (ISBN: 0133837904)Mastering Project Time Management, Cost Control, and QualityManagementWilson (ISBN: 0133839753)Mastering Project Management Strategy and Processes: ProvenMethods to Meet Organizational GoalsWilson (ISBN: 0133854167)9780134060811 Book 1.indb ii1/23/15 1:53 PMFTPress Mngmnt Series.indd 112/11/14 3:15 PM

Mastering Principles andPractices inPMBOK , PRINCE2 ,and Scrum Using Essential Project ManagementMethods to Deliver Effective andEfficient ProjectsJihane Roudias9780134060811 Book 1.indb iii12/11/14 3:15 PM1/23/15 1:53 PM

Publisher: Paul BogerEditor-in-Chief: Amy NeidlingerExecutive Editor: Jeanne Glasser LevineOperations Specialist: Jodi KemperCover Designer: Chuti PrasertsithManaging Editor: Kristy HartProject Editor: Elaine WileyCopy Editor: Gill Editorial ServicesProofreader: Language Logistics, LLCIndexer: Erika MillenSenior Compositor: Gloria SchurickManufacturing Buyer: Dan Uhrig 2015 by Pearson Education, Inc.Upper Saddle River, New Jersey 07458For information about buying this title in bulk quantities, or for special sales opportunities (which may include electronic versions; custom cover designs; and content particularto your business, training goals, marketing focus, or branding interests), please contactour corporate sales department at corpsales@pearsoned.com or (800) 382-3419.For government sales inquiries, please contact governmentsales@pearsoned.com.For questions about sales outside the U.S., please contact international@pearsoned.com.Company and product names mentioned herein are the trademarks or registeredtrademarks of their respective owners.All rights reserved. No part of this book may be reproduced, in any form or by anymeans, without permission in writing from the publisher.Printed in the United States of AmericaFirst Printing February 2015ISBN-10: 0-13-406081-4ISBN-13: 978-0-13-406081-1Pearson Education LTD.Pearson Education Australia PTY, Limited.Pearson Education Singapore, Pte. Ltd.Pearson Education Asia, Ltd.Pearson Education Canada, Ltd.Pearson Educación de Mexico, S.A. de C.V.Pearson Education—JapanPearson Education Malaysia, Pte. Ltd.Library of Congress Control Number: 20149567869780134060811 Book 1.indb iv1/23/15 1:53 PM

For my parents for the education they gave me,and for my brothers,with special thanks to my little brother,Anas Roudias, for his unconditionallistening and support.9780134060811 Book 1.indb v1/23/15 1:53 PM

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ContentsPreface . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xiiIntroduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1Chapter 1What’s a Project? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3Project Definition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Five Characteristics of a Project. . . . . . . . . . . . . . . . . . . . . . .What’s Project Management? . . . . . . . . . . . . . . . . . . . . . . . .What’s a Project Phase? . . . . . . . . . . . . . . . . . . . . . . . . . . . . .What’s a Project Life Cycle? . . . . . . . . . . . . . . . . . . . . . . . . .What Are the Project Management Approaches? . . . . . . . . .Who Are Project Managers? . . . . . . . . . . . . . . . . . . . . . . . . .Chapter 23566789Project Processes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13PMBOK Guide 5th Edition Process Groups . . . . . . . . . . . .PRINCE2 Processes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Inputs and Outputs of PRINCE2 Processes . . . . . . . . . . . .Roles and Responsibilities Under PRINCE2 Processes . . .Processes Synthesis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1317262833Chapter 3Knowledge Areas in PMBOK 5th Edition . . . . . . . . . . . . . 37Chapter 4Principles, Themes, and Methodology in PRINCE2 . . . . 79PRINCE2 Themes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79PRINCE2 Principles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 124PRINCE2 Methodology. . . . . . . . . . . . . . . . . . . . . . . . . . . 129Chapter 5Scrum Method . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 135Definition of Scrum . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Components of the Scrum Framework . . . . . . . . . . . . . . .Scrum Team . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Scrum Events . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Scrum Artifacts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Definition of “Done” in Scrum . . . . . . . . . . . . . . . . . . . . .Conclusion of Scrum. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9780134060811 Book 1.indb vii1351361371411461491491/23/15 1:53 PM

viiiMASTERING PRINCIPLES AND PRACTICES IN PMBOK, PRINCE2, AND SCRUMChapter 6Tips to Prevent Difficulties in PM . . . . . . . . . . . . . . . . . 151Similarities Between PRINCE2 and PMBOK . . . . . . . . . 151Differences and Complements Between PRINCE2and PMBOK. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 152Types of Difficulties Project Managers Can Encounter inEach Project Process and Tips to Anticipate andManage Them . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 158Distinguishing Among Certifications forProject Managers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 162Chapter 7Project Risk Management . . . . . . . . . . . . . . . . . . . . . . . . 165Risk Identification. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Types of Risks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Define a Risk Matrix. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Method for Risk Management . . . . . . . . . . . . . . . . . . . . . .What to Do When a Project Is Too Risky . . . . . . . . . . . . .Chapter 8How to Monitor and Evaluate Projects:The Role of Monitoring and Evaluation Systems andHow to Initiate a Knowledge Management System. . . . 175Difference Between Monitoring, Reporting,and Evaluation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .The Reasons for Monitoring and Evaluation Systemsin the Public Sector . . . . . . . . . . . . . . . . . . . . . . . . . . . .The Monitoring and Evaluation Systems. . . . . . . . . . . . . .Why a Web-Based Monitoring andEvaluation System? . . . . . . . . . . . . . . . . . . . . . . . . . . . .Steps to Building a Monitoring andEvaluation System . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Example of Monitoring and EvaluationSystem Platform. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Tips to Build Monitoring and Evaluation Systems . . . . . .What Is a Knowledge Management System? . . . . . . . . . .The Origins of Knowledge Management. . . . . . . . . . . . . .How to Initiate a Knowledge Management System . . . . .How to Keep Records of Lessons Learned . . . . . . . . . . . .9780134060811 Book 1.indb 911/23/15 1:53 PM

CONTENTSixAppendix A PRINCE2 Business Case Template . . . . . . . . . . . . . . . . 195Appendix B PRINCE2 Business Case Quality Criteria Checklist . . . 199Appendix C Interpersonal Project Manager Skills fromPMBOK Guide 5th Edition . . . . . . . . . . . . . . . . . . . . . . . 201Leadership. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Team Building. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Motivation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Communication. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Influencing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Decision Making . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Political and Cultural Awareness . . . . . . . . . . . . . . . . . . . .Negotiation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Trust Building . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Conflict Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Coaching . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .202202203203204205205206207208209Appendix D List of Figures and Tables . . . . . . . . . . . . . . . . . . . . . . . . 211Appendix E Bibliography . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 215Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2179780134060811 Book 1.indb ix1/23/15 1:53 PM

AcknowledgmentsA special thanks to my editor, Jeanne Glasser Levine, for makingthis endeavor possible, and to all the professors I had for their coaching and encouragement during my study and research.A special thought for people living with HIV AIDS all overthe world, who are confronted with illness, and usually stigma anddiscrimination.To modestly support raising awareness of youth with HIV AIDS,eliminating stigma and discrimination, and contributing to closing thegap by 2030; a part of the author revenues from the sale of this bookwill be given to UNAIDS.9780134060811 Book 1.indb x1/23/15 1:53 PM

About the AuthorJihane Roudias is a monitoring and evaluation analyst in theUnited Nations Development Program, Morocco Country Office(UNDP).She joined the UN in 2006 and has held appointments in different program positions in UNICEF and UNDP. Prior to her work withthe UN, she was employed as a store sales director with one of themost important French ready-to-wear companies.Jihane serves as an expert on results-based management andmonitoring and evaluation training within the UN system. She conducts projects, program reviews, and evaluations and advises otherson them, from the planning to the closing phases. She supports theimplementation of monitoring and evaluation systems within projectsand institutions, and she is in charge of HIV AIDS issues.Jihane holds a bachelor in finance from the Paris Graduate Schoolof Management in Paris, a master in finance engineering from NiceSophia-Antipolis University, and an IPDET certificate from CarletonUniversity in Ottawa, Canada. She is currently a doctoral student inmanagement with the American University of Leadership in Orlando.9780134060811 Book 1.indb xi1/23/15 1:53 PM

PrefaceThe PMBOK Guide, the PRINCE2 method, and the Scrummethod are the three most popular and internationally recognizedstandards in project management.To be effective, project managers can—depending on the project nature—combine those instruments to deliver effective and efficient projects. In fact, the PMBOK Guide and PRINCE2 share thesame project processes, and they can be complementary. The Scrummethod, which is the most popular agile process, is highly recommended for software projects. PMBOK is a guide that underlinesten knowledge areas in its fifth edition that project managers haveto master. PRINCE2 is a method that has seven principles that project managers can follow to implement their projects and deliver theirexpected outputs.This book informs project managers how to combine those international standards to successfully manage projects and gives practicaladvice about how to anticipate and manage difficulties in each project’s process. It also discusses the importance of project risk management and the significance of effective monitoring and evaluationsystems that enable the management to monitor the project performance and make informed decisions at the right moment.9780134060811 Book 1.indb xii1/23/15 1:53 PM

IntroductionAll of us manage personal projects, and some of us have to manage professional projects. At the professional level, projects we haveto manage can apply to the public or the private sector. Indeed, it canbe a military project, a public sector project, an international development project, a humanitarian project, an agriculture project, an industrial project, a service project, a software project, or something else.Whatever the project is, it follows the same processes.At the international level, there are three major certifications forproject management.There is the PMP, which the American system uses; thePRINCE2, which the UK system uses; and the Scrum method, whichis highly recommended for software projects.PMP is short for Project Management Professional and is a professional certificate from the Project Management Institute (PMI).It is a U.S.-based non-for-profit organization focused on projectmanagement.PRINCE2 is short for PRojects IN Controlled Environments andis a project management methodology previously owned by the UK’sCabinet Office. It is the UK de facto standard for project management developed by the government and used by both the public andthe private sectors. PRINCE2, among other best practices, is nowowned by AXELOS, a new joint venture company in the UK.Scrum is a lightweight agile project management frameworkthat has been used to manage complex product development since9780134060811 Book 1.indb 11/23/15 1:53 PM

2MASTERING PRINCIPLES AND PRACTICES IN PMBOK, PRINCE2, AND SCRUMthe early 1990s. Used mainly for software development, it describesan iterative and incremental approach for project work. Scrum is aframework within which project managers can employ various processes and techniques, and within which they can address complexadaptive problems, while productively and creatively delivering products of the highest possible value.The difference between those instruments is that the PMBOKGuide is prescriptive knowledge, whereas PRINCE2 is a descriptivemethodology. The PMBOK Guide answers how questions; PRINCE2answers what, when, and whom questions. Scrum is an iterative andincremental agile software development framework for managingproduct development. It can be used in all kinds of software development: for developing complete software packages, for developing onlysome parts of bigger systems, and for customer or internal projects.PMBOK and PMP are better known in the United States,Canada, and the Middle East, whereas PRINCE2 is better known inthe UK, Europe, and Australia.The PMBOK Guide and PRINCE2, however, are not competitors.1 The similarity between the two instruments is that they sharethe same processes.1If you look at PMBOK Guide 5th Edition, page 2, “This standard is a guide ratherthan a specific methodology. One can use different methodologies and tools (e.g.,agile, waterfall, PRINCE2) to implement the project management framework.”And there’s a similar statement in the official PRINCE2 manual, pages 230 and231, which mentions the PMBOK Guide. Therefore, these two standards arenot competitors; they are complementary to being able to manage projectssuccessfully.9780134060811 Book 1.indb 21/23/15 1:53 PM

1What’s a Project?In this chapter, you will learn the following: The fundamentals of a project The role of the project managerProject DefinitionAs defined by the Project Management Institute (PMI), a projectis a temporary group activity designed to produce a unique product,service, or result. It is temporary. It has a beginning and an end, sothere’s a defined scope and resources. The end of a project is reachedwhen the project delivers its expected outcomes or when it is no longer relevant. The need of the project no longer exists.A project is unique in the sense that it is not a routine operation,but a specific set of activities designed to accomplish a singular goal.Therefore, a project involves a team that often includes people whodon’t usually work together—sometimes from different organizationsand across multiple geographies.A project can create the following: A product that can be an end item (for example, a hybrid car)or a component of another item (for example, a hybrid engine) A capability to perform a service (that is, a business functionthat supports another function)39780134060811 Book 1.indb 31/23/15 1:53 PM

4MASTERING PRINCIPLES AND PRACTICES IN PMBOK, PRINCE2, AND SCRUM A result such as an outcome or a document (for example, a public policy evaluation that delivers results that can be used toreadjust the policy)Projects are also the means by which organizations introducechange. Organizations that don’t change are likely to stagnate or die.Projects deliver products. The product might be a new computersystem that the organization will use to achieve change, or it mightbe more efficient work practices. You can measure these outcomes inthe form of benefits, as you can see in Figure 1.1. The total benefitsthat can be realized from a project must be more than the cost of theproject and the cost of operating in the project document. Otherwise,the project does not deliver a return on investment sMEASURED ASFigure 1.1 A project as a way to introduce change.PRINCE2 defines a project as “a temporary organization that iscreated for the purpose of delivering one or more business productsaccording to an agreed Business Case.”1A Business Case is one of the documents that exists in a PRINCE2project. It includes information such as the reasons for the project,the benefits, cost and time information, and ROI calculation.There are many examples of projects. Here are some examples: Changing the law by introducing the obligations of the KyotoProtocol on climate change Effecting a change in the structure, staffing, or style of anorganization1PRINCE2 project definition9780134060811 Book 1.indb 41/23/15 1:53 PM

CHAPTER 1 WHAT’S A PROJECT?5 Developing software for an improved business process Constructing a building or infrastructure Expanding sales into a new geographic market Implementing a new business process or procedureAll must be expertly managed to deliver the on-time, on-budget,and expected results, learning, and integration that organizationsneed.Five Characteristics of a ProjectProjects differ, but they have some commonalities. Table 1.1presents some characteristics of a project.Table 1.1Project CharacteristicsChangeProjects are a way to introduce change.Example: A new sales website will change how clientspurchase items.TemporaryThere is always a specific start and end to a project, and itshould cease once the mandatory products are created.Ongoing maintenance of a product occurs after the projectand is not considered part of the project.Example: The production of a software to manage sales.CrossFunctionalA project engages people from different seniority andbusiness departments that work together for the period ofthe project.Example: To develop sales software, people from marketingand sales departments should work closely with the ITdepartment.UniqueEvery project is unique.Example: Building a fiftieth school is different from buildingthe forty-ninth one. The location is different, the design isdifferent, and there are different categories of students.9780134060811 Book 1.indb 51/23/15 1:53 PM

6MASTERING PRINCIPLES AND PRACTICES IN PMBOK, PRINCE2, AN

agile, waterfall, PRINCE2) to implement the project management framework.” And there’s a similar statement in the official PRINCE2 manual, pages 230 and 231, which mentions the PMBOK Guide. Therefore, these two standards are not competitors; they are com

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